State delays decision on Iberdrola proposal

Thursday

Aug 28, 2008 at 2:00 AM

ALBANY — The state Public Service Commission put off a decision until next Wednesday on the proposed $4.5 billion acquisition of Energy East — parent of New York State Gas and Electric — by Spanish energy giant Iberdrola.

Christian Livermore

ALBANY — The state Public Service Commission put off a decision until next Wednesday on the proposed $4.5 billion acquisition of Energy East — parent of New York State Gas and Electric — by Spanish energy giant Iberdrola.

The issue was not discussed because two of the five commissioners were absent, though there was never a guarantee the commission would vote at the meeting, said PSC spokesman Jim Denn.

"Certainly some people expected a vote, but there was no requirement that they vote today, nor is they any requirement that they vote next week," he said.

The commission will meet in special session at 10:30 a.m. Sept. 3 to consider the acquisition.

Iberdrola has been trying to acquire Energy East for about a year. Company representatives have touted the acquisition as a way to foster economic development, especially in the upstate region where the company would have its New York headquarters. But some officials — including state Sen. John Bonacic, R-C-Mount Hope — are worried that Iberdrola could monopolize the market and contribute to foreign domination of U.S. energy supplies.

Though it may seem drawn out, the 12 months the process has taken so far is pretty much on target, with most mergers of this size taking between 11 and 13 months, Denn said.

The process has included public statement and evidentiary hearings, submitted testimony and extensive documentation.

Said Denn: "There has been a very well defined and thoroughly reviewed proceeding in this case, and it is proceeding as expected."